Help needed with cost estimating a full rehab

[Rachan M.]

I'm looking to make an offer on a house in DC - 3 BRs and 1 bath, all on the main floor. It has a basement that got flooded a few years ago, water wasn't properly cleaned up and the house has since had mold, including on the main floor. The ceilings have major cracks, there are rodents. This will be a full rehab, as far as I can tell.

On the upside, there is potential to add a second level to the house, which will obviously increase the ARV by a lot.

A couple of questions:

- what is the ballpark cost of a full rehab like this?

- what would it be if a second level were added?

- how long do permits typically take in DC, and how to best manage holding costs?

[Mark Cruse]

Are you trying to flip or have a rental? Those 2 have very different cost models. To bring it current for the retail side a full gut is usually required. To fully gut the entire place, not addressing the foundation or mold it can easily be 250k (depending on multiple factors).  In terms of the water and structural damage you will need to have someone well experienced to assess (Good contractor or structural engineer). For all you know that could get well into the thousands to hundreds of thousands. No matter what, at this point you know you will have to kick out several thousands for water proofing. For the additional level, with all the engineers/architects, labor and materials you are over 100k. In DC to getting variances and clearances you have to have studies done and meet several bureaucratic requirements. You need multiple permits (i.e Building, Raze, Trade). This is the tip of the iceberg. If you go there I suggest you put a credible/experienced  team in and start nailing  down numbers. Without specifics you could be all in for over a million. A lot to unwrap but in no way, shape or form should you proceed without understanding the full scope and at least somewhat of a ball park of  numbers to work with. 

Best of luck